Jeddah and Medina flights from the new terminal 3 starting the 1st of April 2010

EGYPTAIR announces that The departure and arrival of all flights To/from Jeddah and Medina Will be from the New Terminal 3 Starting from 00:01 Thursday 1st of the April, 2010.

EGYPTAIR to start Paphos service

EGYPTAIR to start Paphos service

EGYPTAIR is starting Saturdays-only service on the Cairo – Paphos route from 17APR10, its 2nd destination in Cyprus. There will be 2 flights operating every Saturday.

Schedule (effective 01MAY10) below:

MS883 CAI0525 – 0640PFO 738 6
MS885 CAI2200 – 2315PFO 738 6

MS886 PFO0005 – 0125CAI 738 7
MS884 PFO0730 – 0850CAI 738 6

Egyptair's 777-300ER New Cabin Interior Video!

Recently Boeing delivered EgyptAir's first 777-300ER.

This plane features Business and Economy Class only.

EGYPTAIR's new 777-300ER has 346 seats including 49 lie-flat beds with a 78-inch seat pitch, plus an in-seat entertainment system throughout the cabin. A member of the Star Alliance, EGYPTAIR will operate 777-300ERs on routes to London, Tokyo and North America.

Passengers can enjoy from a wide range of movies, games and CD's on their Audio and Video On-Demand Personal TV Screen (PTV) in Economy (10,4 inch screen) and Business Class (15 inch screen). E-mail and Text messaging is also available. Seats in Economy and Business Class are also equipped with various connections like USB-ports and AC-Power connexions.

Enjoy and relax in a calm relaxing atmosphere by the use of "mood-lights" These advanced LED Cabin lights can change from color during Day, Night, Sunrise and Sunset. In addition, the plane ceiling is decorated with shining blue star lights.

People in Business Class can enjoy their Lie flat-Bed with 78 inch. seat pitch.

EgyptAir 777-300ER cabin lay-out in Business Class is: 2-3-2 and in Economy Class 3-3-3.

Enjoy this great product that change Egyptair Long-Haul flights service and African air travel.

Egyptair's up-coming A330-300's and their current A330-200's should get the same cabin interior.


"EgyptAir.... Enjoy the Sky"

Airlines moved from Cairo airport Terminal 2 to Terminal 1

Oman Air, Alitalia and Olympic Air now operate from Terminal 1. Terminal 2 will soon be closed to undergo a complete renovation and upgrade of its capacity. During that time the airlines currently operating from T2 will be operating from T1

Boeing Delivers EGYPTAIR's First 777-300ER

SEATTLE, March 9, 2010

EGYPTAIR and leasing company GE Capital Aviation Services (GECAS) took delivery Monday of the first Boeing 777-300ER (Extended Range) commercial jetliner to join EGYPTAIR's fleet. EGYPTAIR operates a fleet of five Boeing 777-200ERs, five 737-500s and 12 737-800s, with another eight 737-800s on order directly from Boeing. The Egyptian flag carrier is leasing the new 777-300ER from GECAS and will take an additional five 777-300ERs on lease through the second quarter of 2011 to continue upgrading its long-haul service.

"This delivery is a substantial milestone in the history of EGYPTAIR. We will continue to bring the latest to our customers who deserve the best of everything. This is a continuation of the long term partnership with Boeing," said Hussein Massoud, chairman of EGYPTAIR Holding Company.

"The 777-200ER has always been one of the strongest performers in our fleet for fuel efficiency and reliability. The 777-300ER's additional improvements in fuel efficiency and seat-mile costs will directly benefit our bottom line," said EGYPTAIR Airlines Chairman Capt. Alaa Ashour. "The 777-300ER is an important part of our fleet modernization and growth plans to achieve greater profitability."

EGYPTAIR's new 777-300ER has 346 seats including 49 lie-flat beds with a 78-inch seat pitch, plus an in-seat entertainment system throughout the cabin. A member of the Star Alliance, EGYPTAIR will operate 777-300ERs on routes to London, Tokyo and North America.

Egyptair 777-300ER Interior description

Today Cairo Airport witnessed the milestone delivery of the first EGYPTAIR new Boeing 777-300ER. The flyaway away flight from Boeing factory in Seattle was on the 9th at 14:30 after a ceremony that was overwhelmed by joy and happiness from both Boeing and EGYPTAIR teams. The aircraft accommodates 49 business class full flat seats and 297 Economy class seats all with individual monitors. EGYPTAIR will take an additional five 777-300ERs through the second quarter of 2011 to continue upgrading its long-haul service with premium product. Eng. Hussein Massoud, Chairman & CEO, EGYPTAIR Holding Company who welcomed the aircraft upon arrival, marked this moment stating that “This delivery is a substantial milestone in the history of EGYPTAIR .We will continue to bring the latest to our customers who deserve this premium and highly competitive product”. He added “We are determined on the coherent development plan for the Egyptian Civil Aviation under the vision of H.E. Ahmed Shafiq, the Minister of the Egyptian Civil Aviation”. The delivery team was headed by Captain Alaa Ashour, Chairman of EGYPTAIR Airline who expressed his happiness welcoming the new aircraft to EGYPTAIR family. He declared that “This is a moment all EGYPTAIR employees are waiting for. It is a culmination of the strenuous efforts exerted few years ago to modernize our fleet and upgrade our services to exceed the expectations of our customers”.
The Economy Class on this aircraft accommodates wider and more relaxing seats with only 9 seats abreast which is a great edge for EGYPYTAIR, and each seat is provided by personal entertainment system with 10.4 inch screens to enable our customers selecting the best from the hundreds of audio-visual entertainment programs. Further, economy class customers will use power outlets in their seats to recharge their personal electronic devices. The aircraft is equipped with advanced lighting system through colour mixing. Different mood lighting can be chosen to imitate the sunset, sunrise and dimming lights. In addition, the plane ceiling is decorated with shining blue star lights. The aircraft will operate on the daily service between Cairo and London Heathrow, while the second aircraft who will be delivered by the end of next month will operate on the non-stop service to Narita Tokyo. After the delivery of the third and forth aircraft EGYPTAIR customers will enjoy this premium product on the daily non-stop service between Cairo and New York.

Egyptair Summer 2010 changes

EGYPTAIR’s additional changes to 2010 Summer schedule as follows, thanks to the reader Horus Aviator for the contribution.


Cairo – Amsterdam Increase from 5 to 6 weekly from 30JUN10 (New frequency Day 2)
Cairo – Entebbe Increase from 2 to 3 weekly from 03JUN10 (New frequency Day 4/5)
Cairo – Frankfurt Day 6 service form 01OCT10 operates with A330-200
Cairo – Madinah MS677/678 capacity increase. A340-200 replace A320/737

As per 31DEC09 GDS timetable display, planned EGYPTAIR Summer 2010 changes on International service as follows:


Cairo – Bangkok Airbus A330 replace Boeing 777
Cairo – Bangkok – Guangzhou Airbus A330 replace Boeing 777
Cairo – Frankfurt 30MAR10 – 30MAY10 / 01OCT10 – A330 replace 737-800 on Day x1
Cairo – London Heathrow MS777/778 A330 replace 777 from 01SEP10. (Total 8 weekly A330)
Cairo – Milan Malpensa Increase from 8 to 15 weekly from 01JUN10. Schedule of new flight:
MS743 CAI2225 – 0120+1MXP 738 D
MS744 MXP0220 – 0700CAI 738 D 02JUN10-

Cairo – Osaka Service Increase from 3 to 4 weekly
Cairo – Tokyo Boeing 777 replace A340 from 28MAR10. Service Increase from 3 to 6 weekly from 31MAY10


Additional changes to EGYPTAIR’s 2010 Summer timetable is as follows. Thanks to reader “Horus Aviator” for providing the update.

Cairo – Amman Service maintains at 17 weekly, an increase from 14 compared to Summer 2009
Cairo – Beirut Service maintains at 14 weekly, an increase from 11 compared to Summer 2009

Above flight increases were introduced from 03DEC09.

Alexandria – Beirut Summer seasonal service increasing from 2 to 3 weekly from 05JUN10, on Day 7
Cairo – Abuja Increase from 2 to 4 weekly, new frequency on Day 24 from CAI
Cairo – Algiers Increase from 5 weekly to Daily from 28MAR10. New frequency on Day 15. Larger capacity Airbus A321 operating on Day 5 (5 weekly in S09)
Cairo – Asmara Increase from 3 to 4 weekly from 28MAR10, new frequency on Day 3 from CAI. 5th weekly from 10JUN10 on Day 1 (4 weekly in S09)
Cairo – Brussels Increase from 4 to 5 weekly. New frequency on Day 7 from 02MAY10. However, single weekly Luxor – Brussels is cancelled and replaced by Cairo service.
Cairo – Kano Larger capacity Airbus A321 operates on Day 26 from 28MAR10
Cairo – Khartoum Increase from 17 to 21 weekly (compared to 14 in S09)
MS853 CAI0115 – 0350KRT EQV D
MS857 CAI0830 – 1105KRT 320 D
MS855 CAI1600 – 1835KRT 320 D

MS854 KRT0450 – 0720CAI EQV D
MS858 KRT1205 – 1435CAI 320 D
MS856 KRT1930 – 2200CAI 320 D

MS853/854 330 Day 157 340 Day 234 320 Day 6

Cairo – London Heathrow Previously mentioned aircraft change from 01SEP10, it appears this would be one of the destination for its brand new Airbus A330-300 aircraft

Egyptair's first 777-300ER on it's way to her home-base Cairo

Tuesday, 9 March 2010

SU-GDL B777-36NER Egyptair Delivered
L/N 850 C/N 38284 B777-36NER SU-GDL EGYPTAIR

Dep PAE 15:25 PST
ETA CAI 11:50z on 10th March
Call Sign MSR3330

Flight Routing:
KPAE..SEA.J503.IWACK.J503.YNY.J527.YMM.NCAC.CANEL..
6800N/05000W..6800N/04000W..6700N/03000W..6600N/02000W..
6300N/01000W..MY.G11.GONUT.UM125.SUM.UL7.VENAS.UL74.
MONIL.UP62.PAM.UL620.ARNEM.UL603.DINKU.UM867.BAVAX.UM867.
ABISO.UY21.SABAD.UL862.GISER.UY450.NERRA.UL607.KEA.UN132.
KUMBI.G400.BLT..HECA/1224

Egyptair will serve Copenhagen again

Egypt Air has announced that after a year of waiting, Africa’s largest airline will finally re-launch their service from Cairo to Copenhagen. The route was suppose to be launched last spring, but will now, after last operating in 2004, have three weekly services.

Source

Green Light for Production of Lockheed Martin F-16s for Egypt

Lockheed Martin Awarded $213 Million for 20 New F-16C/Ds in FMS

10:01 GMT, March 4, 2010 defpro.com | Yesterday, Lockheed Martin announced that the US government has given the go-ahead for production of 20 new F-16 fighter aircraft to be delivered to the Egypt Air Force. As part of a foreign military sale (FMS) contract valued at $213 million (€156 million), Lockheed Martin will build 16 F-16C and four F-16D fighter aircraft in the advanced Block 52 configuration which are scheduled to be delivered to Egypt by 2013.

In light of this significant contract, John Larson, Vice President Lockheed Martin F-16 programmes, said: “This is a great day for Lockheed Martin and a testament to the enduring partnership and commitment we have made to the government of Egypt. We remain committed to providing our customer with a proven, advanced 4th Generation multi-role fighter.”

As defpro.com reported in October 2009, the Defense Security Cooperation Agency (DSCA) informed the US Congress of a possible FMS to Egypt of 24 F-16s, including associated weapons and equipment (see: http://www.defpro.com/news/details/10560/). According to the DSCA, the announced FMS contract had an estimated total value of $3.2 billion.


A strong military customer of the US

Being in the process of modernising its aircraft fleet and extending its strike capabilities, the new Egyptian F-16s will complement a current fleet of 216 fighters of this aircraft type and replace some of its older aircraft. The F-16s are the most state-of-the-art asset in the Egyptian Air Force’s inventory. Egypt was the first Arab country to purchase F-16s through a FMS programme called ‘Peace Vector’. Since the initial purchase of 42 aircraft in 1980, Egypt has repeatedly received additional F-16s in the A, B, C and D configurations, some of which have been licence-manufactured by TUSAS, now Turkish Aircraft Industries (TAI).

An earlier report, published at defpro.com, stated that the request by the Egyptian government for additional F-16s had already been accepted by the US in June 2009 (see http://www.defpro.com/news/details/8328/). According to the report, this long-standing request for state-of-the-art military equipment, including F-16s, Apache helicopters, mobile air defence systems and JDAM bombs, had been denied repeatedly by the Bush administration due to Egypt's record on human rights and democracy.

In December 2009, the DSCA announced a number of possible FMS contracts with Egypt worth some $1.19 billion (€830.94 million). The requests by the Egyptian government comprised the sale of Hellfire II air-to-surface missiles, Harpoon Block II anti-ship missiles, upgrade kits for its General Electric F-110-GE-100 aircraft engines powering the Egyptian F-16s, as well as Fast Missile Crafts (FMC).

Source

Air Arabia Primed for Alex Landing

Carrier is poised to open Egypt’s first budget hub, a move that could change the air travel landscape

The biggest budget carrier in the Middle East, Air Arabia, may open a new hub in Alexandria as early as next month, a move experts say could eventually drive down prices across the country, and revitalize the airline business in Egypt’s second largest city.

The Sharjah-based carrier will team with local tourism group Travco, and though the companies have not released a list of destinations or number of flights, their investment has been pegged at LE 150 million.

While analysts could not say whether the new hub will challenge Egyptair’s regional dominance, they believe Egyptians who normally fly out of Cairo would be willing to head north in search of cheaper flights. Should the venture prove as successful as Air Arabia’s Morocco and Sharjah bases, the airline plans to open further hubs in other Egyptian cities.

By reducing the cost of air travel, and forcing traditional airlines to become more competitive, budget carriers have the potential to transform the Egyptian airline industry as the advent of counterparts like Ryanair and easyJet have in other regions.

“Egypt enjoys a strategic location for airline business, especially for Air Arabia with its existing hubs in the UAE and Morocco,” said Adel Ali, Air Arabia Group CEO, in an email interview. “Egypt has a number of international airports and we aim to operate from as many as we can. We will initially start with Alexandria, being Egypt’s second largest city, and expand into more airports based on business sense and operational feasibility.”

The venture, 60% owned by Travco, will give people flying from Al-Nohza International Airport in Alexandria more choice in destinations and flight times, according to Travco chairman Hamed El-Chiaty.

It also means fewer Alexandrians will have to make their way 300 km south to the capital to catch a flight. The move will put Alexandria on the map as a travel destination for European and Arab travelers who now fly into Sharm El-Sheikh and Hurghada to benefit from budget air fares.

The airline is set to announce the expanded number of routes and flights soon. Its goal is to follow in the footsteps of its Moroccan hub launched last May. By offering flights to 11 destinations in Europe and North Africa, that hub helped the airline attract 11 million passengers in 2009.

Neither Travco nor Air Arabia would comment on whether there had been talks with the Ministry of Civil Aviation about flying out of Cairo, state-run Egyptair’s hub, but they added that the airline may fly out of the capital in the future.

Air Arabia, also the Middle East’s first budget airline, began operations in October 2003. In just six years, the airline has become a force, flying to more than 60 destinations out of the Sharjah and Casablanca. The company plans to begin with two Airbus A320 aircraft in Alexandria and to increase the fleet as needed.

While Air Arabia has managed to post positive annual growth, few national carriers could boast the same in light of the global economic downturn during what industry insiders are calling the worst year for air travel in the sector’s history. Egypt, though, was one of the few exceptions. The number of scheduled passenger departures for 2009 was 9.6 million, up 4% from 2008. The country has seen substantial growth in terms of air traffic recently, says the International Air Transport Association’s chief economist, Brian Pearce, despite the economic crisis.

“Growth has been relatively robust. The Egyptian economy slowed down to a 4.7% (growth rate) last year, which is lower than we’ve seen before, but there is growth during a global recession.

“I think we’ve also seen growth in capacity in air transport infrastructure and services,” he says, alluding to Egyptair’s membership in the Star Alliance network of air carriers in 2008 and recent investment in airport renovations throughout the country.

Pearce predicts the airline industry will continue to grow as new carriers, such as Air Arabia, open the market to passengers unable to afford regular fares. They will also push other airlines to offer better, more cost-effective services, similar to Europe in the 1990s when budget airlines first came on the scene.

Though they usually offer fewer routes, flights, airport choices and creature comforts, no-frills carriers have flourished around the world by providing flights that can be up to 50% cheaper than national carriers. A return flight to Sharjah from Alexandria on Air Arabia costs LE 1,472, while Egyptair’s economy class flight on a recent day from Cairo was LE 2,160.

“In many ways [Egypt] is still a country where people don’t fly anywhere near as much [as in] Europe. There’s a lot of opportunity for people who haven’t flown to fly more. Lower fares give them access,” says Pearce.

“Obviously, when you get a new entrant there’s also the element of taking market share from the incumbents and there will be some of that, but because Egypt has a fast growing economy I think there’s a scope to stimulate the market overall. It certainly means there’s more pressure for innovation and cost cutting.”

Pearce foresees more new entrants here as airlines find new ways of exploiting the region’s vast population and tourism potential.

Dr. Adla Ragab, an economics professor at Cairo University and expert on air travel in the region, says Air Arabia’s hub will likely increase the number of Egyptian air passengers and could increase travel in the region. Last year, 18% of people who flew to Egypt were from the Arab world. But she points out that airline’s claim that it will boost tourism depends on which European and Middle Eastern cities Air Arabia will connect to.

“The number of passengers will increase and it will be very good for the airport, but the growth will not be as much as we are expecting [for other airlines],” she says.

Cairo International Airport’s chief commercial officer Jean-Pierre Tabet does not think traffic at his airport will be affected greatly because its passenger base, business travelers, is not a low-cost carrier’s target clientele. There is also the question of whether savings will be substantial enough to entice passengers living in Greater Cairo to add an extra three-hour train trip to their journey.

“There may be some minor shift in passenger traffic that lower prices attract, but we are generally geared toward business travelers,” he says, most of whom are looking for convenience and greater choice in flights, classes and destinations rather than the cheapest fares.

He says he does not know if Air Arabia or Travco approached the Ministry of Civil Aviation to put the hub at Cairo Airport, adding that capacity at the airport is tight due to the closure of Terminal 2 for upcoming refurbishment. Already airlines are moving out into temporary stations in Terminal 1. In addition, the Ministry of Civil Aviation has set up agreements with national airlines that might make it difficult for certain regional carriers to set up shop in the capital.

Air Arabia is counting on a growing population of travelers reliant on cheap fares to make their new hub profitable, as well as the ever growing numbers of air travelers in the region.

“I think growth in the Middle East and North Africa is likely as liberalization continues and economic growth continues to boost salaries. I think you will see new [airlines and joint ventures] coming in and providing more services. What we’ve seen is if the market is stimulated there tends to be more business for carriers of all different business models,” says Pearce. bt

Source: Business Today

Wonderful article about Cairo Airport and Egyptair

Middle Eastern Star

By Cathy Buyck
Air Transport World, March 2010, p.20

EGYPTAIR HAS NO AMBITION TO BECOME A FIVE-STAR AIRLINE with exclusive first-class suites and luxury spas in its lounges, at least not for the present. Yet it is aiming to give its expansionistic Middle East and Gulf counterparts a cookie of their own dough with an increasingly effective strategy to source flow traffic over its Cairo hub supported by its membership in Star Alliance and a strong determination to gain, or regain, market share.

"We're facing intense competition from Gulf carriers and they have planned major capacity growth. Furthermore, we're disadvantaged in terms of resources but we have to deal with that," Alaa Ashour, chairman and CEO of the Cairo-based airline, states in down-to-earth fashion. However, he tells this magazine EgyptAir has some major assets to support its competitive prospects including a "long and strong history" as a flag carrier whose origins date back to 1932, low unit costs, a large home market (Egypt is the Middle East's most populous country with a population of more than 80 million), a homogeneous workforce and, last but not least, a government that applies an open skies policy only to its regional airports (see article p. 28). Foreign airline access to Cairo International remains regulated by bilaterals and it is a stronghold of the national carrier, which holds 60% of departure slots there, according to Ashour.

Despite this strong position, and no indication from the Ministry of Civil Aviation that it will change its stance on CAI, Ashour is convinced that EgyptAir has to prepare for open skies. "Liberalization in the Middle East, in Egypt, will come. We have to be ready," believes the 45-year-old pilot who was appointed chairman and CEO of the airline in September, signaling rejuvenation at the top. "We are doing our best to have a competitive product. This is one of the reasons why we are modernizing our fleet."

MS took delivery of 12 new 737-800s over the past two years and has firm orders for a further eight narrowbodies and orders and options for 14 widebodies for delivery between now and 2014 (see table, page 22).

Fourteen older aircraft including its 777-200s, 737-500s, A340s and some A320s will be retired, but as EgyptAir Holding Co. Chairman and CEO Hussein Massoud points out: "The market is not very attractive to sell them now. We have a contingency plan for some aircraft if we can't sell them. The A340s might get new interiors." By 2014, EgyptAir's fleet should comprise 72 aircraft compared to 64 at the end of 2009 and 32 in 2002.

This month, EgyptAir Airlines will take delivery of its first new 777-300ER, which will feature its first fully lie-flat beds and be the first aircraft to enter the fleet on an operating lease (from GECAS). All other mainline aircraft are owned. Regional affiliate EgyptAir Express deploys 12 owned E-170LRs while EgyptAir Cargo flies two A300B3-200Fs and two A300-600Fs. The three carriers operate under the same AOC but are managed separately and have their own P&L accounts. In aggregate, they operate some 1,200 weekly flights to 72 destinations worldwide.


Holistic Turnaround

In fact, EgyptAir is doing a lot more than a fleet renewal. It launched a major corporate reengineering in 2002, when its structure was changed from a governmental organization into a holding company with subsidiaries. The move coincided with establishment of the Minister of Civil Aviation and the government's ambitious strategy to modernize and upgrade its airports and airline.

"The two are interconnected; overhauling [just] the airports or the airline would have made no sense as they affect each other," Massoud states. As a textbook example that the government's strategy is correct, he cites the synchronized joining of EgyptAir into Star Alliance in July 2008 and the opening of CAI's new Terminal 3 in December, enabling efficient hub functionality for both airport and airline.

EgyptAir's membership in Star, and the consequent adoption of all its standards, also "proves how committed we are to promote our company," he says, stressing that MS has changed "a lot" since it was given the right to operate without any interference from the government and the duty to do so without any financial backing. "It became a different airline," he asserts. EgyptAir Airlines indeed has come a long way since its incorporation. It established a 24-7 Integrated Operations Control Center, became the first airline on the African continent to be IOSA certified in 2004 and outlined a new network strategy initially with Sabre Airline Solutions Consulting and now with Seabury APG, resulting in a hub model connecting Africa, Europe and the Middle/Far East over CAI. Transfer traffic is 15%-20% at present and should reach 30%-40% in a couple of years. In March it will start assessing the third and final phase of its network optimization, which will lead to reorganization of its flight schedule into multiple banks from the next winter schedule compared to two at present.

It also modernized its IT infrastructure including a cutover from its in-house legacy passenger service system to Amadeus's Altea customer management solution, transferred its domestic operations to a new subsidiary in response to the liberalization of the domestic market in 2006, updated its frequent-flyer software and program, launched a new corporate identity with a more dynamic look and new aircraft livery in 2008, "and so much more and so much more to come," Ashour laughs.

In the next months, for instance, MS will be moving from the more segment-based PROS RMS revenue optimization tool to PROS' O&D Solution and it will enhance the functionality and usage of its Internet booking engine. At present, just 5%-6% of bookings are made online.


Competitive Unit Cost

The new approach did deliver results, with a substantial improvement in all of its performance metrics. Compared to 2003-04, aircraft utilization rose from 9.25 daily block hr. to 11.01 in its most recent financial year ended June 30, 2009. Flight punctuality improved from 79.1% to 87.5% and passenger load factor lifted from 64% to 67.4%. The number of passengers carried grew from 4.5 million to 7.1 million excluding Express, which accounted for an additional 1.3 million boardings. Traffic more than doubled in the six-year period from 8.96 billion RPKs to 16.16 billion on an 85% hike in ASKs from 13.04 billion to 23.9 billion.

Its financial performance also improved. EgyptAir Airlines has been consistently profitable over the past five years after posting a net deficit of EGP247 million ($44.8 million) in its first year as an independent company. In fiscal 2007-08 it reported record earnings of EGP231.9 million on revenue of EGP9.3 billion, up 43% and 34% respectively over the prior year. For the year ended June 30, 2009, net earnings amounted to EGP207.6 million on revenue of EGP9.9 billion. "Many carriers faced difficulties or reported heavy losses during the financial crisis. Fortunately, we realized a profit in all our subsidiaries in the last financial year and even in the first half ended Dec. 31," Massoud boasts. The company does not publish half-year results, but the chairman indicates "results were better than anticipated and we foresee a full-year profit for fiscal 2009-10." Passengers carried in the first half decreased 4% compared to the year before as RPKs rose 3% on a 2% increase in ASKs.

EgyptAir has been affected by the industry downturn, he says, but not to the same extent as some carriers in Europe, the US and the Far East owing to its strategic location at the crossroad of Africa and the Mideast, steady Hajj and Umrah traffic, "which guarantees a part of our profit," and ethnic travel. Hajj and Umrah traffic represents up to 10% of international enplanements yearly, although this has been halved to 4.5% owing to H1N1. Networkwide yields fell about 8%-10% in FY08-09 and the first half of FY09-10. "We'll remain profitable but we are under extreme pressure," Ashour concedes. "Yields are going down and unit costs are going up owing to higher fuel prices and extensive product upgrades." He figures the year-on-year CASK increase will "not be less than 10%-15%" after years of a stable level at "between 5 and 8 dollar cents," which he accurately describes as "very competitive" for a full-service carrier.

While emphasizing that MS will stay loyal to its heritage as a full-service network carrier, Ashour argues that it has to target all segments and explore all options to grow revenue as yields stay under pressure. "We have to be flexible, innovative," he reasons. "There is no longer an exact model; everybody is a hybridLCCs and FSCs alike."

EgyptAir recently set up an in-house commercial R&D department and "will be rewriting its strategy," he says, cautioning, however, that unbundling "is a plan for the future." Its operations at Alexandria could become a noteworthy exception to its full-service philosophy owing to major inroads made by Mideast LCCs into Egypt's second-most-populous city.

"We'll strengthen the base in a 'smart' way," Ashour says, yielding that "maybe" a switch to a low-cost model is on the agenda. Changes are expected to take place from next winter's schedule. It currently flies from Alexandria El Nozha to Cairo and six destinations in the Middle East with a pair of A320s. EgyptAir Express operates to an additional seven domestic destinations.

Meanwhile, the carrier is moving forward with a comprehensive product upgrade throughout its fleet, including new catering and a reinforced "we care" service approach. At the end of January it commenced a vast training program for its 7,300-strong workforce, involving everybody from the call center to station managers to flight crew, about the importance of customer service. This will extend to all its related subsidiaries such as EgyptAir Maintenance & Engineering, EgyptAir Ground Services and EgyptAir In-flight Services.

Human Capital

"We are investing a lot in human capital; it is part of our strategy. It's our objective to reach a better customer satisfaction through offering a good network, a good product and a good service. We would like EgyptAir to be recognized for a competitive customer service with the unique Egyptian spirit," Massoud explains, noting that "buying aircraft takes two to three years, building a new terminal takes two years, but building up human capital takes at least ten years."

With the arrival this month of its first 777-300ER, which will operate initially on the CAI-London Heathrow route, MS formally starts phasing out its first class that currently is available on the 777-200s and A340s. The 777-300ERs come in a two-class configuration, with 49 fully lie-flat seats in business and 291 seats in the economy cabin, which will be equipped with individual IFE units. Its new A330-300s will feature a similar configuration with 36 business class seats and 260 seats in economy.

"With the fully lie-flat seats we see no need for a first class," Ashour says. "It also reduces costs and complexities." Its new narrowbodies feature an equally comfortable layout, with 24 business class seats with a 48-in. pitch and 120 economy seats. All seats have individual IFE. "Demand in business is still very strong," Massoud confirms. The first four 737-800s had only 16 seats in business, but the number was upped on subsequent deliveries owing to strong demand. Those four will be refitted with an additional eight business class seats.

EgyptAir Airlines' winter timetable has it operating 441 weekly flights on its international network spanning 60 destinations in 44 countries. With 20 airports served, Europe remains its biggest market and "most profitable region," Massoud reveals. It serves 16 Mideast destinations and an equal number in Africa, but in line with its own and Star's network strategy it is looking to expand its footprint on the continent, mainly to West Africa. It is also in discussions with Star partner South African Airways about "cooperation to explore all possibilities to grow the African markets." Ashour remains tight-lipped about rumors that this could lead to a JV airline feeding EgyptAir's hub in the north and SAA in the south.

In general, MS adds two to three destinations per year. In 2009 it commenced four-times-weekly service to Abuja and Dar Es-Salam and a twice-weekly to Almaty. EgyptAir Express added Taba to its network. MS is doing a market analysis on several new destinations including Mauritius, Abidjan, Lusaka, Dakar, Douala, Toronto, Washington and Chicago. It aims to bring one new African and one new European destinationCopenhagen or Manchester online this summer, and an American destination in summer 2011

"We want to have a worldwide coverage with our own flights but we use codeshares and Star to get to destinations which make no commercial sense to fly on our own," concludes Massoud. "We are the national carrier of Egypt, but we have to be profitable."


Source: ATW Online